Had a loan rejection for non-credit reference reasons - should I apply with other lenders?

dgrey

I applied for a loan with Tesco Bank that the MSE eligibility checker said I had 90% chance of getting, but alas I was rejected. I knew I had an excellent credit score and plenty of surplus income to repay the loan, so this was a bit of a shock. I rang them up and they said it was due to their internal criteria, not due to the credit check. The person on the phone also said that their criteria are particularly strict right now and I might want to try again in 3 months.

I can't really wait that long though as I want to use this to get some major home improvement done soon. I'd like to try with another lender but I'm worried if too many applications will just shut me out of consideration. Is that a legitimate worry? Should I try for a lesser amount with another lender? Or add my wife as a co-applicant? (She has good credit history but is part-time, so much lower income.)

[Deleted User]

It's worth trying at least one more. How much as you asking for and what's your income?

What's on your credit files?  Your excellent score is of no help when it comes to getting credit, so it's worth checking the files of both you and your wife, even if you did fail on internal criteria.

Thrugelmir

Lenders don't use the credit score. They use the data contained in your file. A subtle but significant difference. You need to consider what tripped the alarm bells. 

dgrey

Deleted_User said:

It's worth trying at least one more. How much as you asking for and what's your income?

£25k on a £60k income. Which is maybe too ambitious to ask for, but since the eligibility check thing gave me 90-95% chance with numerous lenders I figured it would be fine.
My credit file doesn't show anything serious as far as I can see. No high risk items, no missed payments, longstanding credit history, etc.

Clive_Woody

dgrey said:

Deleted_User said:

It's worth trying at least one more. How much as you asking for and what's your income?

£25k on a £60k income. Which is maybe too ambitious to ask for, but since the eligibility check thing gave me 90-95% chance with numerous lenders I figured it would be fine.
My credit file doesn't show anything serious as far as I can see. No high risk items, no missed payments, longstanding credit history, etc.

What other debts do you have (loans, credit card balances, overdrafts)? Are you on the electoral register? How long have you been in your current employment? Are you financially linked with anyone whose credit history might have issues?

dgrey

Clive_Woody said:

What other debts do you have (loans, credit card balances, overdrafts)? Are you on the electoral register? How long have you been in your current employment? Are you financially linked with anyone whose credit history might have issues?

There's a £6k car repayment loan showing up on my credit file - I paid it off a few weeks ago but it hasn't cleared yet (apparently there are extra delays getting these sorts of things updated at the moment). No other active debt. I'm on the electoral roll, current employer for 4 years, no dodgy financial links.

Clive_Woody

dgrey said:

Clive_Woody said:

What other debts do you have (loans, credit card balances, overdrafts)? Are you on the electoral register? How long have you been in your current employment? Are you financially linked with anyone whose credit history might have issues?

There's a £6k car repayment loan showing up on my credit file - I paid it off a few weeks ago but it hasn't cleared yet (apparently there are extra delays getting these sorts of things updated at the moment). No other active debt. I'm on the electoral roll, current employer for 4 years, no dodgy financial links.

Might be best to wait until the car loan has cleared before applying again.

Thrugelmir

dgrey said:

Deleted_User said:

It's worth trying at least one more. How much as you asking for and what's your income?

£25k on a £60k income. 

An unsecured loan in the current climate is probably above the risk threshold of my finance houses. 

[Deleted User]

Tesco are weird at the moment. I applied Fri 18th May for a loan. Immediate acceptance, digitally signed the docs. No money came. Long story short chase chase chase..... apparently “ internal issues “ were causing delays in sending funds out ! ( I think they run out of money lol ) 
I made a complaint, they paid me £30 as a sorry, and funny enough after I told them Ive gone elsewhere and wanted to cancel - funds turn up in my account in two hours ! Only a week late. Money was sent straight back and I got what I wanted from my own bank.

Funny old business.